Geopolitical Tensions Intensify, Causing a Significant Increase in Polyester Chip Prices

March 3 news

Today, driven by the surge in the market, mainstream bottle chip manufacturers in China have raised their spot quotations, with strong expectations of a price increase. As of March 3rd, according to price data, the average spot price of polyester bottle chips in East China is 6,667 CNY per ton.

• Cost side: Driven by the escalation of geopolitical tensions, crude oil prices have surged, and coupled with a sharp rally in PTA futures, the center of gravity for polymer costs has risen significantly.

• Supply: Concentrated production cuts and shutdowns, leading to an expectation of reduced supply; operating rate 68.42%

• Demand: Downstream soft drink production is operating at 70–80% capacity and is gradually recovering.

• Inventory: Available for 16.55 days, a slight increase from the previous period but still tight in China.

In the short term, as long as the situation in the Middle East does not substantially cool down, it will be difficult to eliminate the premium on crude oil and upstream raw materials. The price of PET bottle chips will remain at a high level with fluctuations driven by costs. In the short-term forecast, prices are expected to fluctuate with a bias towards strength, following the volatility of crude oil/raw materials, and the range will move upward. If facilities restart and inventories accumulate later, there may be a slight correction.